The equilibrium exchange rate is 0.70 euros per dollar. At this exchange rate, the quantity demanded equals the quantity supplied and is $1.3 trillion a day. If the exchange rate is now 0.60 euros per dollar, then
A) there is a shortage of dollars and the exchange rate rises.
B) there is a shortage of dollars and the exchange rate falls.
C) there is a surplus of dollars and the exchange rate rises.
D) there is a surplus of dollars and the exchange rate falls.
E) there is no change.
A
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Martha and George have just completed a nasty divorce, and Martha won the lion's share of the settlement. What can we conclude about their lawyers?
A) George's lawyer was productive, Martha's wasn't. B) Martha's lawyer was productive, George's wasn't. C) Both Martha's and George's lawyers were productive. D) Neither lawyer was productive.
At the Bretton Woods conference, all currencies were given
A. a fixed value. B. a floating value. C. a zero value. D. a par value.
Real GDP per capita in the United States (as of 2007) exceeds that of France primarily because:
A. the United States had higher annual rates of growth than France from 1960 through 2007. B. the United States has a much larger population than France. C. the United States has a higher percentage of the working-age population in the labor force and because U.S. employees average about 20 percent more hours worked per year. D. European Union rules severely limit France's access to technologies developed outside the region.
In effect, tariffs on imports are
A. subsidies for foreign producers. B. subsidies for domestic producers. C. subsidies for domestic consumers. D. special taxes on domestic producers.